The long drought continues: No IPOs in the first quarter |
Connect with TechFlash on our Facebook page for all the latest technology news headlines and commentary, plus information and access to special events, photos from events, promotions and more.
Today On Techflash
- Can Microsoft overcome the smartphone app gap?
- Hey recruiters: Here's an R&D lab run by, and for, students
- Apps that waste your time (in a good way): Execs' addictions
- WTIA announces Industry Achievement Award finalists
- Analyst sees 7-inch iPad in Apple future
- Check out this app: Executives list the ones they use most
- Hey recruiters: Here's an R&D lab run by, and for, students
- Can Microsoft overcome the smartphone app gap?
- Keiretsu Forum NW invested $24 million in 36 startups in 2011
- Daptiv cuts staff; CEO Franklin departs
- Daptiv is latest tech company to cut jobs
- Daptiv's Pancottine resigns as company seeks new CEO
Mass High Tech
The long drought continues: No IPOs in the first quarter
It has been more than two years since a Washington technology company completed an initial public offering. And the long, hard drought doesn't look to be ending anytime soon.
No venture-backed companies in the entire country completed an IPO in the first quarter, the first time on record that there have been two consecutive quarters without any new offerings, according to the National Venture Capital Association. The mergers and acquisition market also took a hit in the first quarter, with 56 companies selling out at an average disclosed deal value of $49.6 million. That compares to 106 deals at an average deal value of $113 million for the same period last year.
"We predicted that the venture-backed IPO market was going to get worse before it was going to get better, and we were unfortunately correct," said Mark Heesen, president of the NVCA. "Today our concerns are not limited to the zero IPO issues but have now expanded to the shrinking pipeline of companies in registration. Once we begin to see a recovery, there won't be many companies prepared to take advantage of it, effectively extending the lackluster market until the pipeline rebuilds."
Only 26 venture-backed companies are currently registered to go public.
Venture capitalists are concerned.
"There is absolutely no public market and there hasn't been for venture-backed companies since 1999," said OVP's Chad Waite recently told TechFlash. Asked if the market will come back, he said: "I hope so."
UPDATE: Madrona's Matt McIlwain -- whose firm participated in one of the last venture-backed IPOs in the state with Isilon Systems -- doesn't think the IPO market will turn around anytime soon. "I think we will see very little, if any, IPO deal activity in 2009," said McIlwain. The problem is two fold. There aren't many companies in registration to go public and the valuations are bad. McIlwain said that most growth companies are now trading at one to two times their trailing 12 month revenue multiple, which compares to three to five times in the past.
"It is not a good time from a valuation perspective," he said.
By the way, the last Washington technology company to complete an IPO? That was Clearwire, which priced on March 8, 2007.
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.
TechFlash Team
Recent Sponsor Posts
Who's creating today's energy efficient buildings? Find out at the BetterBricks Awards, Feb. 16
BetterBricks Awards salute the individuals leading the way for high performance commercial buildings with an emphasis on energy efficiency. Join us as we recognize these standout green building professionals.
Award categories include: Advocate; Architect/Designer; Facility Manager/Operator; and Owner/Developer.
Keynote Speaker: Kevin Kampschroer, Director of U.S. GSA's Office of Federal High Performance Buildings. Kevin leads the U.S. General Services Administration's efforts in building sustainability and accelerating industry adoption of sustainable principles across all aspects of a building's life.
Register here by February 10!
If you are interested in buying a table, email Monica Alquist or call her at 206-876-5404.
The Triple Door Presents: The Atomic Bombshells "J'ADORE!: A Burlesque Valentine"
Seattle's reigning Burlesque super-troupe delivers a gorgeous and glittering VALENTINE featuring some of the Bombshells' most exhilarating acts to date. J'Adore! promises to celebrate l'amour with good humor, style, and a healthy dose of dazzle! Bring a friend, a lover, a family member, or a secret crush, and celebrate with the Valentine's Burlesque spectacular that will leave you shouting: "J'ADORE......The Atomic Bombshells!" The incomparable Jasper McCann emcees with high style and charm.
Please visit www.thetripledoor.net for a full schedule of future performances.
The Triple Door Presents: Bob Mould – See A Little Light: An Evening of Reading and Music
"Bob Mould. Those two words are synonymous with integrity. From Husker Du in the last century to right at this moment, Bob is the real deal, writing and playing music for music's sake. He's a great songwriter and performer. I have been a fan of Bob's for thirty years now with no end in sight." -Henry Rollins
Please visit www.thetripledoor.net for a full schedule of future performances.
Why Choose BDO for your SOC (previously SAS 70) Reports?
BDO’s experience in providing attestation services (SAS 70/SSAE 16, AT 101, AT 201, AT 601, etc.) to a broad range of industries, and our team of skilled professionals distinctly qualifies us to serve as your company’s Service Auditor. By leveraging the BDO global network of control specialists, we are poised to provide global services in more than 1,000 offices and across 119 countries. Many organizations find that investing in reports on controls may result in benefits, including:
• Increased client confidence
• Improved competitive advantage
• Minimization of frequent audits
• Streamlined business processes and controls
• Enhanced risk management
For detailed information contact Paul Martini at pmartini@bdo.com.
